Russia ditches ruble and pays debt in dollar to avert default
Moscow made a payment of $564.8 million on a 2022 Eurobond and $84.4 million on a 2042 bond in dollars
Russia avoided a sovereign default on Friday by paying its overdue international debt in dollars, after earlier pledging to pay them only in rubles.
Russia's finance ministry said it had made a payment of $564.8 million on a 2022 Eurobond and $84.4 million on a 2042 bond in dollars.
The payments made by Moscow on Friday were due in April but entered a 30-day ‘grace period’ when Russia was unable to make the payments. The final deadline was on May 4.
The ministry said the funds have been channeled to the London branch of Citibank. It is, though, unclear whether the money would make it to the United States and other Western countries.
In March, Russia completed a foreign bond payment of $117 million averting the country’s first default on its foreign debt obligations since 1918.
Russia’s foreign currency reserves have been frozen by international powers due its invasion of Ukraine.
Russian President Vladimir Putin had also said that foreign buyers must pay for Russian gas in rubles starting April 1 as Western sanctions hamper country’s economy.
(With inputs from Reuters)
Picture Credits: Reuters
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